The Federal Reserve maintained benchmark interest rates at 4.25% to 4.5%, with Chair Jerome Powell emphasizing a wait-and-see approach for future cuts. Mortgage rates for 30-year fixed loans rose slightly to 6.88%. Refinance activity grew by 3%, but the purchase index fell by 0.4%. Analysts suggest that adjustable-rate mortgages may gain popularity if rates decrease later in the year, while stability in the market continues. The Federal Housing Administration's share of applications has also seen a gradual increase, highlighting evolving trends in the mortgage industry.
Mortgage rates edged slightly higher but remained within the same narrow range, with the average for a 30-year fixed-rate conforming mortgage at 6.88%.
The refinance index increased by 3% from the previous week, and was 29% higher than the same week one year ago.
Analysts at BTIG noted this has been one of the most stable quarters for mortgage rates despite Treasury volatility around Liberation Day in April.
The adjustable-rate mortgage share of activity decreased to 6.9%, but these mortgages typically gain market share when rates are elevated.
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